James Bannon (Longford-Westmeath, Fine Gael)

The Taoiseach refers to a global crisis but the mess has been created by Fianna Fáil, which has been in power for 20 of the past 22 years. The party will not pull the wool over the eyes of the public on this issue. The Minister of State might be looking after his brother's interest but the people understand the position much better than him.

Low and middle income earners who, in light of the income and the pension levies, are in danger of losing their homes will not have their loans written off. Why will the Government not look after the many young people who are in dire straits with their loans? Last Monday, nine people attended my clinic seeking references as they headed abroad. Three of them wanted to go to Australia and six wanted to head for Canada because of the mess the Government has made of the economy.

The joy of the first step on the property ladder has turned sour for many young people and it has been replaced by the real prospect of being turned out of their homes. This is happening, despite what the Government has stated, because too many restrictions are in place. Shame on the Government for the way it is behaving towards the public. This is far from the promises Fianna Fáil made in the run up to the last general election. It will get its answer on 5 June, if not before.

Allied Irish Banks stated earlier it may write off up to €4 billion on bad loans in 2009 and €2.65 billion in 2010. Not only is today's news disturbing for the taxpayer, it is also a major blow to international investment. The chief executive of Allied Irish Banks described his efforts to explain the situation to international investors as a "very trying task". Given his salary and the perks he has enjoyed, I do not shed tears for him. His own avowed regret over aspects of the bank's lending record, particularly on loans provided to developers and builders, ring hollow in the light of the monumental blow that his actions and that of his bank have struck against the taxpayer. A number of commentators claim the problems the banks are facing are compounded, rather than eased, by the Government's blanket guarantee of their debts and deposits. Allied Irish Banks and Bank of Ireland are no longer judged individually, as they have been subsumed into Ireland Inc, and are judged as one with the Government.

The Government's total loss of credibility on the markets due to its failure to develop a comprehensive recovery package is damaging the banks it sought to protect. For their economic recovery, they need to convince international markets to lend to them. However, stories are rife about the current aversion to all things Irish among international investors and financiers. While some may be attributable to a natural caution in the current global climate, the rapid fall from its elevated position leaves Ireland open to suspicion.

See this speech in context